Transport and Logistics Investment Projects

Initiatives related to the development of the transport infrastructure of the Far East are designed to create a basis for further economic growth in Russia, solving social problems and improving the quality of life. Today, a number of investment projects have been launched to build and update logistics facilities, to develop transport and transit routes, and to increase freight turnover. The session will present projects aimed at development of a comfortable and functional environment, maintenance of environmental safety and strengthening of cooperation with the Asia-Pacific Region countries.

Renewable Energy: The Outlook for Supplying Energy to Remote Regions That Are Not Part of the National Electricity Network

Despite the frenetic pace of development in Asia-Pacific countries, the social and economic growth of important regions is being held back by an inadequate or non-existent supply of energy. To a certain extent, this issue is being addressed by diesel power stations, although the high cost of fuel, including delivery, results in high electricity prices, while diesel facilities already in operation are harmful to the environment. Building power lines for a small number of consumers is not economically viable. At the same time, modernizing existing forms of electricity generation (or creating new ones) which make use of renewable energy sources – primarily solar and wind energy – would significantly decrease the cost of electricity, reduce atmospheric emissions, and create a solution which could be applied to numerous remote, isolated areas. For Russia, this is an issue of great importance: around 20 million people (13.7% of the population) live in regions with a decentralized energy supply. Russia already has experience of building autonomous hybrid solar-diesel and wind-diesel power plants, primarily in the Sakha Republic, the Altai Republic, and the Transbaikal region. Refining these facilities further would, however, require international cooperation, both in terms of manufacturing components and mechanisms, and in helping to develop remote regions. What measures should be implemented in Asia-Pacific countries in order to realize the potential of renewable energy to provide remote regions with an electricity supply? What is the potential for international cooperation between the countries of the Asia-Pacific region in this field? How can existing solutions for remote and isolated regions based on renewable energy sources be applied to third countries in the Asia-Pacific region?

Plenary session. Education in the Asia-Pacific: new challenges and opportunities

The 6TH APEC Conference on Cooperation in Higher Education

Despite favorable growth in the areas of economic and trade cooperation, the level of educational collaboration between APEC members remains quite modest. This plenary session of the APEC CCHE’17 will be devoted to assessing progress in the sphere of education and defining the most promising directions for further cooperation.

Key topics:Current state and level of cooperation in the sphere of education between APEC member economies: challenges and opportunities;Most promising directions for cooperation in the area of education;Ways for realization of educational cooperation potential in the Asia-Pacific;Role of education in implementation of the APEC Connectivity Blueprint 2015-2025;Prospects of creating common educational space and pathways to it.

Healthcare for People. What Will Be Done?

The sociological surveys indicate that healthcare issues are a primary cause of concern among residents of the Russian Far East. Many indicators in this area are worse than the Russian average. The healthcare gap between the region and neighbouring countries is greater still. In order to respond to this challenge, the healthcare system of the Russian Far East must make primary healthcare equally accessible to the urban and rural population, attract a qualified medical workforce, implement innovative methods for organizing primary care and the prevention and treatment of diseases, and create a new healthcare infrastructure. This will require a special government approach to planning healthcare development in the Russian Far East. What are the priorities for healthcare development in the Russian Far East in order to achieve the goals of increasing the population and life expectancy of the region? In what areas could the Russian Far East become a driver of innovative development in Russian healthcare? In what ways is healthcare cooperation with neighbouring countries currently developing? What is the Russian Ministry of Healthcare doing to ensure advanced healthcare development in the Russian Far East?

Vladivostok, City of Diamonds: The Start of Gem-Cutting

The Russian Far East is a global leader in rough diamond production. The region contains 81% of the diamond deposits present in the Asia-Pacific region. However, nearly every rough diamond mined is exported and cut in another country. In 2016, the Eurasian Diamond Centre was opened in Vladivostok to provide infrastructure for launching new gem-cutting and jewellery manufacturing facilities. 2017 saw the launch of the first investment projects in diamond production and jewellery manufacturing. Alrosa has announced the start of a programme to provide financial assistance to diamond cutters. What are the factors that determine the global competitiveness of a location for attracting investment in diamond-cutting? How can the Russian Far East succeed in competing for investors in this sector? How will the programme of financial support for diamond cutters operate? What impact could eliminating duties and other financial restrictions have on Russian diamond-cutting enterprises and their investors? Could Russian diamonds as an international brand provide a competitive advantage for Russian diamond cutters?

For the last four years, Russian federal authorities have been working to create conditions for investment and doing business in the Russian Far East, which will make it a serious competitor within the Asia-Pacific region. Thanks to new mechanisms, including ASEZs, Vladivostok Free Port, and infrastructure support for investors, more than 700 new investment projects have been initiated in the Russian Far East and 40 new companies have been established. However, without improving the entrepreneurial climate in each specific region – the direct result of efforts by regional government teams – these new mechanisms will fail to have the necessary multiplicative effect. In the 2017 Russian Regional Investment Climate Index, only two Far Eastern regions demonstrated positive trends: Khabarovsk Territory and Amur Region. The positions of the other regions had worsened significantly. In the opinion of entrepreneurs, what positive and negative changes have taken place in the regions of the Russian Far East over the past year? What are the major needs and requirements from business with respect to the regional authorities right now? How do investors rate the effectiveness of local governors’ teams? What policy changes are regional leaders planning to make in order to improve the investment climate?

Russia–Mongolia: A Meeting Point in the Russian Far East

Relations between Russia and Mongolia have a long history based on a tradition of good neighbourliness, and are orientated towards further development in the spirit of strategic partnership. Mongolia has an enduring interest in Russian technology, and remains a place which cherishes and respects the Russian language and the culture and traditions of Russia’s peoples. Business relations between the two countries recognize the need to bring a new dynamic to bilateral collaboration and to realize the potential of trade and economic cooperation. Areas in which expanded collaboration shows obvious promise include energy, transit, developing border regions, and environmental conservation. Strengthening cooperation between Mongolia and the EAEU could prove to be a strong driver of growth in mutual trade and cross-border economic partnership.What decisions could provide a fresh boost to bilateral cooperation? In what sectors does cooperation between Russia and Mongolia show the most potential? How can effective collaboration between Russia and Mongolia be ensured in trade regulation, removing barriers to trade, and supporting the flow of goods and investment? What strategic proposals exist for developing bilateral relations?

Coal and Logistics: Export Potential

Only 27% of proven coal reserves in the Russian Far East have been made available to investors. A full range of major coal extraction and enrichment projects has now been launched in the region. Having demonstrated resilience during a period of low prices, recovering Russian market players are starting to increase exports to countries in the Asia-Pacific region. However, there is a need to modernize railway networks and optimize transportation tariffs, which are creating bottlenecks within the sector. What unoccupied niches and viable projects in the Russian Far Eastern coal sector could be of interest to investors from the Asia-Pacific region? What are the prospects for coal exports in the Russian Far East? What do coal producers in the Russian Far East expect from modernization of the Baikal–Amur Mainline (BAM) and Trans-Siberian Railway? What is the potential for increasing the effectiveness of investment in coal extraction by developing logistics?

Moderator:
Boris Yatsenko —
Partner, Head of the Metals & Mining Group in Russia and the CIS, EY

New points of economic growth in the Russian Far East will not provide the anticipated effect if we do not simultaneously ensure the comprehensive development of the areas surrounding them – this includes building housing, nurseries, schools, healthcare facilities, and cultural centres. Initial experience relating to a new government approach to comprehensive urban development in the Russian Far East comes in the form of long-term plans to develop the towns of Komsomolsk-on-Amur (Khabarovsk Territory) and Svobodny (Amur Region). These focus the efforts of all key agencies and state companies on creating a qualitatively new environment in these towns, including a comfortable and accessible social, utilities, transport, and energy infrastructure and modern public spaces. What have been the initial results of applying this new approach to urban development in the Russian Far East? What new solutions and tools must be implemented at the federal level in order to ensure the comprehensive development of towns in the Russian Far East? In which other towns in the Russian Far East will urban development be prioritized as a task of federal importance?

Moderator:
Alexey Kuznetsov —
Anchor; Associate Professor of Management Department, Financial University under the Government of the Russian Federation

Panellists:
Igor Afanasyev —
Chief Executive Officer, "Gazprom Pererabotka Blagoveshchensk"
Marina Dedyushko —
Senior Deputy Prime Minister of the Government of Amur Region
Artur Niyazmetov —
Deputy Minister for the Development of the Russian Far East
Alexei Rakhmanov —
President, United Shipbuilding Corporation
Dmitry Volkov —
Deputy Head of the Government of Khabarovsk Territory on Komsomolsk-on-Amur City Comprehensive Development Issues

Partnership for Greater Eurasia: Expanding a Future-Oriented Joint Development Space

The Eurasian continent is becoming a flagship example of regional integration, which is focused primarily on the interests of the countries of Greater Eurasia. Developments are taking place in the Eurasian Economic Union (EAEC), the ‘Belt and Road’ economic cooperation system, the initiatives being implemented by ASEAN countries, and the South Asia cooperation programme run under the aegis of India. Ensuring synergy rather than competition between Eurasian projects could advance the interests of all the continent’s nations. This is exactly the idea of the Eurasian Economic Partnership (EEP), or Greater Eurasia: building a space for joint development by creating an economic relations system that takes account of the interests of all of its participants without being tied to the signing of any one collective agreement in particular. How and by what means can the EEP be created? To what extent can the EEP serve both as a common cooperation framework and as a platform for using specific trade and investment mechanisms? What benefits can the establishment of the EEP bring to the region’s countries? How can the experience gained from the success of multilateral trade agreements and pending projects initiated by mega-regional trading blocs be taken into account in the formation of the EEP? What balance between liberalization and protectionism today best meets the interests of EEP member countries and their partners?

Moderator:
Sergey Karaganov —
Dean, School of International Economics and Foreign Affairs, National Research University Higher School of Economics; Honorary Chairman of the Presidium, Council on Foreign and Defence Policy

Forests and Timber Processing: From Timber to Pulp and Paper Factories

The Russian Far East is home to 51% of forest resources in the Asia-Pacific region. Of some 90 million cubic metres of timber available for processing, however, only 16 million cubic metres, or 18%, are harvested. Around 75% of timber is exported in the form of logs; only 25% is processed into lumber and plywood. As for waste and substandard timber, this is permanently lost. In 2016, Vnesheconombank announced the creation of a forestry cluster in the Russian Far East, and in 2017 a major Chinese investor declared their interest in constructing a pulp mill. In which regions of the Russian Far East would investment in forestry bring the most gain? How can a forestry cluster and a complete cycle of timber processing be established in the Russian Far East? What solutions must the government provide in order for this to be achieved? Could raising duties on log exports assist in the development of deep processing enterprises? What impact will the construction of a pulp mill have on the sector regionally?

Russia–India: Identifying New Opportunities

In 2017, India made its first investments in the Russian Far East outside the oil and gas sector, and the first phase of a Russian–Indian cooperative venture to establish a diamond and jewellery cluster in Vladivostok is now beginning. A number of Indian companies are at an advanced stage of decision-making about investing in machine building and oil and gas extraction. Even so, business leaders from the two countries recognize that there is huge untapped potential for bilateral investment cooperation in the Russian Far East. India and Russia are ready to work together to increase their trade and economic cooperation in the Russian Far East, taking the necessary steps to achieve this and making available special conditions and incentives. In particular, as of 1 August 2017, Indian citizens can take advantage of a simplified visa regime and enter Vladivostok Free Port on an electronic visa. This will have a direct impact on the development of Russian–Indian cooperation in the Russian Far East and the flow of tourists from India into the region. What projects are Indian companies already implementing in the Russian Far East, and what is the key to their success? What mechanisms and solutions could act as a catalyst for the growth of Indian investment in the Russian Far East and mutual trade? In which sectors does Russian–Indian investment cooperation have the greatest potential? What changes need to be made to the regulation of these sectors to make them attractive for Indian investors?

Panellists:
Sergei Cheryomin —
Minister, Head of Department for Foreign Economic Activity and International Relations, Moscow City Government; Chairman of the Board, Business Council for Cooperation with India
Minesh Dave —
Chief Business Development Officer, Tata Power
Shiv Vikram Khemka —
Vice Chairman, SUN Group
Ludmila Kuznetsova —
General Director, "Agrohab" LLC
Alexander Osipov —
First Deputy Minister for the Development of the Russian Far East
Pankaj Patel —
President, Federation of Indian Chambers of Commerce and Industry
Pankaj Saran —
Ambassador Extraordinary and Plenipotentiary of the Republic of India in the Russian Federation
Sushma Swaraj —
Minister of External Affairs of the Republic of India

The Potential of the Northern Sea Route. From Words to Actions

The Northern Sea Route is the shortest sea route from Asia to Europe, and experts estimate that by 2050 it will be passable for non-ice reinforced vessels all year round. Taking this into consideration, it is strategically advisable at this point to begin developing the Northern Sea Route for purposes other than simply the transport of natural resources from the Arctic zone, or ‘northern deliveries’. In 2016, a model for establishing a regular Arctic container line using the Northern Sea Route was developed. The niche which will be filled by the Northern Sea Route relates to container cargo transit between the ports of North-East Asia (China, Japan, and South Korea) and those of Northern Europe (Rotterdam, Hamburg, and others), which is preferable to a southern route. Around 455,000 TEUs of container cargo traffic currently have transit paths for which use of the Northern Sea Route would provide a significant advantage to the shipper. An optimal logistics scheme has been developed for a regular Arctic container line: transit will be conducted between two port hubs in the cities of Petropavlovsk-Kamchatsky and Murmansk using ice-class container ships, with additional feeder lines to end-ports in Europe or Asia. How can participation in the joint development of the Northern Sea Route be made attractive to China, Japan, and South Korea? Would there be merit in establishing a joint venture to manage a regular Arctic container line? How can competitive conditions for container cargo transit via the Northern Sea Route be ensured? Could investment in Northern Sea Route infrastructure be made profitable in the long term?

Agricultural and Food Industry Investment Projects

Historically, agriculture in the Far East was considered a risky business. However, comprehensive development of the region and investment in infrastructure projects in the agriculture industry have changed the situation. Today, agriculture is one of the fastest developing sectors in the region`s economy. The Agency for Human Capital Development in the Far East estimated the growth potential of the segment population by 2021 by more than 5,500 thousand people that is 15–20% for the last 3 years. Within the framework of the session will be presented promising projects in the field of agriculture, food industry, fish farming and agriculture. They are aimed at contribution to an increase in food security and investment potential of the region.

Moderator:
Andrey Zhurankov —
Head of the Analytical Group of the Press Center, News Agency TASS

‘Russia’s Gateway to Asia’: The Role of the Russian Far East in Asia-Pacific Integration Initiatives

Asia today is growing ever more self-reliant, and, accordingly, more closed-off externally and more open and competitive internally as a market. Other EAEU countries can gain access to this market via the Russian Far East. To safeguard its own interests to the greatest extent possible, it is important for the region to take on a proactive role, cooperating with the Eurasian Economic Commission (EEC) in two key international areas of its activity in the coming years: coupling together the EAEU and the Belt and Road initiative, and concluding free trade agreements with partners in the Asia-Pacific region. The Russian Far East is the part of both Russia and the Eurasian Economic Union, which is situated directly in the Asia-Pacific region, and taking its interests into consideration is vital when building a long-term format for relations with countries of the region. What needs does the Russian Far East have with respect to integration processes in the Asia-Pacific region? How far are the parties prepared to go on the question of creating a free trade zone? To what extent would this be in the interests of the Russian Far East? Could the ‘coupling’ be open for other regional partners to join? Where do participants view a role for the institutions of the EAEU, and where can there be bilateral tracks within the ‘coupling’? How can investment in the Russian Far East be stimulated using free trade zones?

Front row participants:
Igor Makarov —
Senior Research Fellow, Centre for Comprehensive European and International Studies (CCEIS), Faculty of World Economy and International Affairs, National Research University – Higher School of Economics
Bong Kwon Park —
Editor, Maeil Business Newspaper

The sea ports of the Russian Far East connect Russia logistically with the countries of the Asia-Pacific region and compete for trade flows in this rapidly growing part of the world. Vladivostok Free Port was established to create globally competitive conditions for their development. Planning for the Free Port took into consideration best international practices in the creation of free port zones, as well as Russia’s own experience of developing the free port system. Investors in Vladivostok Free Port receive tax incentives and benefit from preferential administrative policies. A system of 24-hour state border crossing points operates within the Free Port, together with a ‘single-window’ service, electronic declaration and shortened customs clearance times, and a simplified visa entry regime for foreign citizens (using eight-day electronic visas). Vladivostok Free Port is now home to more than 300 investors, and more than 20 new enterprises have been launched. How do residents of the Free Port rate the success of this modern approach? What economic effect are the conditions having on new enterprises? How can the unified tax for Free Port residents and related administrative burden on business be shifted? What adjustments are needed to the free customs zone regime within Vladivostok Free Port? What effect will electronic visas for foreign citizens have on investors? Is extending the free port regime to all ports and airports in the Russian Far East a necessary step?

The Russian Far East: Creating a New Quality of Life by Responding to Challenges

Solutions from Russian State Companies. The Far Eastern Priority

State companies are making a significant contribution to forward-looking development in the Russian Far East. A key objective for these companies, aside from profitability, is solving the challenges faced by the state. One such challenge is improving the quality of life of inhabitants of the Russian Far East. Many of Russia’s leading state companies are currently implementing specialized solutions in the region. Will Aeroflot’s so-called ‘flat’ tariff on destinations in the Russian Far East be maintained and extended? What other measures can the company offer to support the mobility of people in the region? Has the Agency’s for Housing Mortgage Lending (AHML) lowering rates on mortgage programmes for residents of the Russian Far East proven effective? In what other ways could the organization ensure affordable housing in the Russian Far East as part of this programme? How can Rostelecom help to eliminate the digital divide in the Russian Far East? What else can other state companies do to accelerate development in the region?

Moderator:
Alexey Kuznetsov —
Anchor; Associate Professor of Management Department, Financial University under the Government of the Russian Federation

Front row participants:
Andrey Donets —
Deputy Chairman of the Government of the Amur Oblast
Olga Epifanova —
Deputy Chair, The State Duma of the Federal Assembly of the Russian Federation
Vladimir Ilyukhin —
Governor of Kamchatskiy Krai
Mkrtych Kazaryan —
Head of the representative office of the Chukotka Autonomous region under the President of the Russian Federation in Moscow
Mikhail Kolesnikov —
Vice President, All-Russian Non-Governmental Organization of Small and Medium-Sized Business OPORA RUSSIA
Andrey Panov —
Minister of Industry and Geology of the Republic of Sakha (Yakutia)
Sergey Tolstoguzov —
Deputy Director General, Director of the Division «Far East», RusHydro PJSC

Gold. A New Chapter in the Gold Rush

Thirty percent of gold deposits in the Asia-Pacific region are located in the Russian Far East. More than 20% of proven reserves, or one thousand tonnes of gold, are held within an unallocated state fund, whereas more than 500 deposits require additional exploration and could be introduced into its investment turnover. What gold deposits and investment projects for gold extraction are in need of Russian and foreign investors? How can the government assist in establishing the infrastructure required for the development of new gold deposits? How can the introduction of small and medium-sized deposits into the turnover be accelerated? What financial, tax and administrative initiatives must be created to ensure the flow of capital into the projects of junior companies?

Competitive Law and the International Arbitration Centre in the Russian Far East

Guarantees for the protection of ownership rights, together with access to effective channels for resolving disputes with counterparties, are of significant importance in the decision as to whether to expand a business into a particular region. The examples of Hong Kong and Singapore show that the presence of competitive systems of law and independent centres of arbitration in these jurisdictions has been an important factor in the development of Asian economic centres. Could the Free Port of Vladivostok repeat the successes of Hong Kong and Singapore in establishing competitive systems for law and arbitration? And if so, how can this be achieved? How should a new arbitration centre in Vladivostok go about winning the confidence of Russian and international investors? Could it be possible to establish an Asian axis of arbitration linking Vladivostok, Beijing, Hong Kong and Singapore?

Housing and Utilities. What Will Be Done?

People residing in the Russian Far East place housing-related problems as one of their top concerns. The cost of housing and utility services in the Russian Far East is significantly higher than the national average, although the quality is lower. A large proportion of available housing is dilapidated or even hazardous. The unsatisfactory housing situation is one of the major factors driving people to leave the region for more comfortable conditions in other parts of the country. By modernizing urban infrastructure, demographic and socioeconomic development in the Russian Far East could get a significant new boost. The appearance and comfort levels of towns and cities in this region have become an important factor in the competition for human capital, especially when it comes to the most active sector of the population – young specialists. It is for this reason that in 2017, ensuring high-quality housing and utility services for the population and creating a comfortable urban environment were added to the list of priority areas for strategic national development. What will be done in the Russian Far East to implement this priority project for developing housing, utilities, and the urban environment? What conditions must be created in order to attract investment into housing in the Russian Far East, including from countries in the Asia-Pacific region? What conditions are needed to enable integrated development and management of the housing and utilities infrastructure in the macroregion? How will the mortgage sector develop in the Russian Far East? What is being done by Russia’s Ministry of Construction, Housing and Utilities to develop the residential sector?

Small and Medium-Sized Businesses. Everything for Growth!

New conditions for doing business in the Russian Far East are increasingly attracting the interest of small companies. Last year the number of projects in ASEZs and Vladivostok Free Port with a total investment of between RUB 1 million and RUB 60 million has increased from 80 to 300. A programme of tax credits for small and medium-sized businesses has been launched in the Russian Far East. Nearly 300 business owners have received tax funds to aid their development. What adjustments need to be made to the ASEZ and Free Port regimes in order to make them more attractive to small and medium-sized companies? What can the government do to help small businesses in the Russian Far East access the large Asia-Pacific market? What else can be done to make concessional financing available to small and medium-sized businesses? What is the greatest obstacle to the growth of small and medium-sized businesses in the Russian Far East?

Moderator:
Konstantin Bogdanenko —
Member of the Presidium of the Management Board, All-Russian Non-Governmental Organization of Small and Medium-Sized Businesses Opora Russia

The Asian Energy Ring. Are Politicians and Energy Companies Ready?

Current and projected energy demand in the Asia-Pacific region is enormous. At the same time, in many countries of the region it is precisely a lack of access to energy, which is acting as a brake on continued high growth rates. The launch of huge international energy projects is a key global trend. Projects like these help to address the disparity in access to energy resources, to calm price volatility, and to achieve political stability and regional economic development. To ensure comprehensive integration of these projects and to create a new configuration of connected energy networks, it is essential to set up a single technological platform for the electricity grid. Digital transformation, standardization, and ensuring a new level of energy security are all vital conditions for this. These challenges create a far-reaching opportunity to carry out scientific research in the field of electricity transmission, to establish new standards for managing a new-generation network, to ensure the integration of different sources of generation and smart users, and to provide cyber security. Science could become a key driver behind the creation of a platform for integrated energy networks in North-East Asia. The establishment of an Asian super-ring connecting Russia, China, Japan, South Korea, Mongolia, and possibly additional countries has the potential to solve many of the problems threatening sustainable development in the region, and could lead to enduring, mutually beneficial collaboration, not only in energy, but in a number of other sectors as well. What regulatory changes are necessary in order for such a project to be realized? Do the economic implications surrounding existing electricity transmission technologies make projects to integrate energy networks in North-East Asia viable, or is it vital to invent new, ground-breaking technologies? To what extent should technological solutions for integrated energy networks be standardized? What is the economic viability of implementing such a project, and what financial models have been used to implement similar projects?

Moderator:
Vasily Savin —
Partner, Deal Advisory, Head of Power and Utilities, KPMG, Russia and CIS

The Russian Far East: Creating a New Quality of Life by Responding to Challenges

Creating 100,000 New Jobs. Challenges and Solutions

By 2025, 100,000 new jobs are projected to be created at new enterprises in the Russian Far East, and 70% of them will be for qualified specialists. It will be impossible to fill these positions using only the region’s existing workforce, however. The government has proposed a programme to attract specialists from other regions; nonetheless, the scale and conditions of these proposals are indicative of the need to adopt new measures aimed at attracting staff and creating a new system to train and retrain specialists in accordance with the employers’ requirements. What is the status and what are the development trends of the employment market in the Russian Far East? How is the government helping to attract more people to come and work in the region? How will labour mobility programme 2.0 measures stimulate migration to the region? Is job rotation a potential way to lay down roots?

Moderator:
Valentin Timakov —
Director General, Agency for the Development of Human Capital in the Far Eastern Federal District

Aquaculture and Mariculture: Establishing a New Sector in the Russian Far East

According to the estimates of scientists from the Russian National Scientific Centre of Marine Biology, more than 2 million hectares of the marine area of the Russian Far East are suitable for cultivating mariculture products which are especially valuable and sought-after on Asia-Pacific markets. Only 1% of this area is presently being made available to business for these purposes. In 2017, the Russian Government introduced new procedures for allocating marine areas in the Russian Far East to marine farmers. Marine plots will be created in response to applications from interested investors using a specialized online service, and assigned by electronic auction. It is planned that 100% of available marine plots will be provided for the use of business by 2020. The Russian Far East is also home to the world’s most extensive wild salmon natural spawning grounds. The scientific and business communities believe that more than 200 fish farms could be established in the region to breed various species of salmon. In which regions of the Seas of Japan and Okhotsk can marine aquaculture be developed? How is the online service used to establish marine plots for aquaculture? Could this mechanism be expanded to incorporate plots for salmon farming? What support measures is the government offering marine farmers?

Women’s Empowerment for Growth and Development

There is growing consensus that substantive gender equality in the labour market is both a prerequisite for economic growth and a response to challenges posed by demographic changes in ageing societies, as well as mirrors new societal understanding of shared family responsibilities between men and women. However this consensus has not yet translated into substantial improvements in female participation in the labour market or in the quality of women's employment and earnings. Women as employees often are faced by significant disadvantages such as lower wages as compared to men, higher share in informal employment and lower-paid employment as well as working conditions discouraging reconciliation of work and family responsibilities. Some of these differences even remain when accounting for structural factors such as choice of education and occupation or differences in the level of employment. The session seeks to demonstrate how increasing female labour force participation can generate growth, stabilize communities and contribute to social innovation. Panelists are invited to share global experiences and views on ways to increase employability and competitiveness of women, promote women’s entrepreneurship and access to finance, close gender participation and pay gaps (including at corporate boards), improve the work-family-balance, develop skills to harness opportunities of digital economy and promote women’s leadership through entrepreneurship, education and economic empowerment.

Fishery Investment Projects

More than 71% of Russian fish are harvested in the Far East. Annually, 1 million tonnes of aquatic bioresources are not harvested in the region. The projects presented in the panel have every chance to radically change the situation. The construction of new high-tech fish processing centers will show the potential of Primorye, meet the needs for fresh and quality product. In addition, the upgrade of the fish logistics and processing complex will create the conditions for the development of unique trade relations ̶ the "fish exchange".

Investment Projects in Chemical and Petrochemical Industries

The Far East is a strategically important region in terms of potential resources and gas reserves. For five years, the production of natural gas in the region has increased by almost 10%, and the production of oil - by 40%. The government is interested in deep processing of hydrocarbons in the Far East. Therefore, the projects of the chemical and petrochemical industry have great prospects. The session will present the projects on the construction of Nakhodka Fertilizer Plant, Amur Gas Processing Plant and the miniplant for the production of liquefied natural gas in Yuzhno-Sakhalinsk.

Discussion Talk Show Far East Economy 2030

World Festival of Youth and Students Session

Young people are the guarantee of future development of the country. Their vision is fundamental in forming the development strategy for the Russian economy over the next 25 years. The boisterous technological advancement and recent breakthroughs prompt the global community to seek ways to adapt to structural change in the economy, social sector, etc. New trends in industrialization prompt a number of questions: what will the Russian economy look like in 2030? What are the development prospects for the global economy? What role will the Far East play in it? What economic models will prevail in the future and what are the main challenges for the Far East economy? To answer these questions, we need to understand what are society, the family and the state’s priorities. Gaining the young people’s perspective on this volatile environment will help identify opportunities for advanced economic development of the Far East, while retaining national self-identity.

Established in 1996, Russia-ASEAN dialogue partnership has proven its value and utility for both parties. Currently the priority is to intensify cooperation further and, building upon the firm foundation of our achievements, propel the relationship to the higher level of mutually beneficial strategic partnership. This goal is set forth in the Sochi Declaration of the ASEAN-Russian Federation Commemorative Summit to Mark the 20th Anniversary of ASEAN-Russian Federation Dialogue Partnership “Moving Towards a Strategic Partnership for Mutual Benefit”. Since then, our relations have reached a number of milestones, for instance, the free-trade agreement between the Eurasian Economic Union and Vietnam entered into force. Russia and ASEAN intrinsically need each other. Geopolitically, both share an interest in securing multi-polar world order where Russia and ASEAN would act as self-reliant powers. Economically, the Eurasian Economic Union and ASEAN represent mutually attractive markets. In terms of humanitarian cooperation, both Russia and ASEAN advocate socio-cultural diversity and inter-civilizational dialogue. The participants are welcome to ponder how Russia- ASEAN relations can derive maximum benefit from our converging fundamental interests.

The Export Potential of the Russian Far East. Meeting Growing Demand in the Asia-Pacific Region

One of the key challenges posed by the creation of favourable conditions for investment in the Russian Far East lies in establishing a system for delivering regional goods to the rapidly expanding markets of the Asia-Pacific region; in particular, to markets in which the consumer represents the major economic class of modern Asia – the urban middle class. Here, the Russian Far East is in competition, not only with national Asian producers, but also with companies from the USA and Europe who have already been exporting to these markets for some time. These export competitors already enjoy the support of their Asian partners and their governments, through chambers of commerce and export-import banks. These invest directly in information, networking with Asian regulatory bodies, engaging Asian experts to do outreach work with exporters, and assisting exporters by organizing industry and marketing research in their interests. A full range of tools are used by the government in support of exports. What barriers are hindering the export of goods from the Russian Far East? How can a support system for exports from the Russian Far East be formed on a governmental and intergovernmental level? What are the most effective channels for promoting export-oriented goods produced in the Russian Far East? What role could be played by electronic platforms? How can a marketing strategy for Russian Far Eastern goods be implemented, and a ‘Made in the Russian Far East’ brand be created to promote them on foreign markets?

Pandemic Preparedness as a Condition of Sustainable Economic Growth in the Asia-Pacific Region

The Asia-Pacific region is among the most vulnerable to the threat of pandemic. The spread of infection has an impact on many sectors, including trade, investment, tourism, medicine, and scientific and technological cooperation. Losses caused by new (highly pathogenic influenza, the Zika virus, coronavirus) and well-known (HIV/AIDS, dengue fever, malaria) infections in a region can amount to billions of dollars, but they can be avoided. To make this possible, rapidly growing economic and social links in the region should be accompanied by investment in strengthening epidemic warning and reaction systems, and in developing intergovernmental cooperation on a regional level. This will reduce the negative effects of pandemics on the economy and the progress of integration processes, and increase investment attractiveness. The key to increasing preparedness and the ability to react to a pandemic in the Asia-Pacific region lies in political commitment to cooperation in this area, developing collaboration between healthcare services, and scientific and technological cooperation in research and development to identify new means of diagnosing and preventing infection. Is the Asia-Pacific region prepared for the next pandemic? What weak points are there in existing systems for controlling epidemics in the region? Would it be possible to create a single international epidemic warning and reaction system in the region? What could Russia and other states in the region contribute to the creation of such a system? What are the priorities for scientific and technological cooperation between countries in the region in order to increase readiness to deal with the threat of infection? What incentives exist to encourage private sector investment in healthcare, scientific and technological cooperation to counter pandemics in the Asia-Pacific region?

The Russia–China–Japan–US Quadrangle: Are There Opportunities for Cooperation?

Valdai Club Session

A session devoted to discussing new opportunities for multilateral cooperation in Asia. The context for such a discussion is provided by the continuation of ‘Russia’s turn pivot to the East’, changes in USA regional and global policy, the strengthening of the multifaceted partnership between Russia and China, and the spirit of cooperation pervading Russian-Japanese relations. Although contradictions and disagreements on important issues exist between the countries of the Asian region, Asia should not be allowed to become a region divided by zones of influence and competition between groupings of states. The refusal of the USA to participate in projects regarded by the previous administration as a means of containing China and, in part, Russia, could open up new opportunities for multilateral cooperation. Russia needs to further strengthen its position in Asia through collaboration with all of the important players in the region, and to engage them in projects to develop the Russian Far East and deepen its integration into regional and global markets. It is the relationships that exist within the Russia-China-USA-Japan quadrangle that could eventually become a basis for cooperation and coordination of interests which is beneficial to all. A practical agenda for such cooperation must be formed now, through substantive discussion of its participants’ approaches to the political and economic development of Asia and the world as a whole.

Russia–ASEAN

Throughout the 20-plus years of relations between Russia and ASEAN member states, particular attention has focused on trade. This year marks the launch of a range of projects in the Russian Far East that are being implemented with the participation of companies from ASEAN member states – in machine building, agriculture, timber processing, transport, and tourism. However, it is also crucial to concentrate on the considerable investment potential, which remains untapped. To ensure the success of projects undertaken in the Russian Far East with the participation of investors from ASEAN member states, unprecedented conditions have been put in place to ensure the highest level of convenience. The region is in a position to become a springboard for building cooperation between Russia and ASEAN countries. Special significance should be accorded to projects, which will create a multiplier effect, joint production based on the application of cutting-edge, innovative solutions, and breakthrough technologies targeted both at the local market and for export to countries experiencing continued growth in demand for products of this kind. It is vitally important to give due consideration to the opportunities presented by multilateral cooperation, whereby investors from several countries participate in a single project. What are the projects being realized in the Russian Far East by ASEAN member states? How can investors from several ASEAN countries be brought together for a single project? What barriers are currently impeding the flow of investment from ASEAN countries into the Russian Far East, and how can these be overcome? Which sectors feature the most promising projects for working together?

Sport. What Will Be Done?

A discernible feature of the Russian Far East is its remoteness from traditional spiritual and cultural centres – a remoteness which is keenly felt by its inhabitants. New facilities must be built, and existing ones modernized. Full use is not being made of the potential for international cultural cooperation, and the potential of Vladivostok as an outpost of Russian culture in Asia has not been sufficiently explored. It is vital to increase the competitiveness and attractiveness of regional cultural projects, on both the Russian and the international stage. What needs to be done to improve residents’ satisfaction with the quality of cultural services? What are the priorities in terms of cultural growth and what projects will be implemented in the near future? What is the Russian Ministry of Culture doing to develop the cultural sector in the Russian Far East?

Chemical Utilization of Oil and Gas in the Russian Far East: A New Business Niche?

27% of gas reserves and 17% of oil reserves in the Asia-Pacific region are concentrated in the Russian Far East, and the level of development of known oil and gas deposits is extremely low and does not exceed 12%. In 2016, 25.5 million tonnes of oil and 26.7 billion cubic metres of gas were extracted in the region, the majority of which was exported in its raw state. The state has expressed its interest in plans for the deep processing of hydrocarbons in the Russian Far East. A number of Russian companies have announced the launch of major projects relating to the chemical utilization of oil and gas in Russia, including the construction of the Amur Gas Processing Plant, the Amur Gas Chemical Complex, and the Far Eastern Petrochemical Complex. The appearance of such projects fulfils preconditions for the creation of full-scale gas- and petrochemical clusters, which will be able to accommodate dozens of processing facilities. What is the existing potential for the production and consumption of the products of gas- and petrochemical companies in Russia and the Asia-Pacific region? Is the Russian Far East a competitive location for the development of the gas and petrochemical industry? Are Gazprom and Rosneft well positioned to create full-scale chemical clusters in the Russian Far East? What gas and petrochemical facilities are the most attractive for localization in the Russian Far East from financial and market perspectives? How can the formation of new value chains in the Russian Far Eastern gas and petrochemical industry be initiated?

Lowering Energy Tariffs: The Impact on Projects

A programme to lower energy tariffs in the Russian Far East was launched on 1 July this year. Although it is too early to discuss outcomes, the question for today is clear – how can the maximum benefit for the region’s economy be extracted from the programme, and used to increase competitiveness in the Russian Far East? Following the lowering of energy tariffs for businesses, in combination with easy transport accessibility in the Asia-Pacific region, the Russian Far East is attracting renewed interest, both from Russian investors representing the energy sector, and from industrial corporations in Korea, Japan, and China. Global and Russian experience of liberalizing the energy market suggests that the effectiveness of tariff lowering as a mechanism is heavily dependent on the quality of dialogue between economic stakeholders, and on striking a balance between the interests of the state and those of energy consumers. What direct and indirect effects will businesses in the Russian Far East experience as a result of lower energy tariffs? Can we expect growth in investment following reductions in the cost of electricity? What investment projects will receive fresh impetus once energy tariffs have been lowered to the Russian national average? The mechanism for lowering energy tariffs is set to operate for three years – what will happen after 2020? How will the decisions made impact energy development in the Russian Far East as a whole? Could this experience of reducing energy tariffs be applied to other kinds of business costs in the Russian Far East?

Residents of the Russian Far East: Demographic Development, a New Quality of Life, and New Opportunities

Achieving stable population growth in the country’s Far East is a strategic challenge for Russia. The concept for demographic policy in the Russian Far East adopted by the Russian Government sets the objective of increasing the population of the macroregion to 6.5 million people by 2025, and increasing life expectancy to 76 years. To achieve this, a new quality of life will need to be established across every aspect of society. This means not just exceeding the national standard for Russia, but raising it to a level that is competitive with the quality of life in neighbouring countries. This needs to be done as quickly as possible, making use of all available resources. What measures need to be taken to stop the exodus of people from the region and secure population growth? What would make the Russian Far East a comfortable and attractive place to live? What most concerns residents of the Russian Far East? Which problems need to be resolved first?

Front row participants:
Sergey Bashkirov —
Director, Interregional Charity Foundation "Dar Zhizni"
Evgeniy Chekin —
Chairman of the Government of the Republic of Sakha Yakutia
Valery Fedorov —
Director General, Russian Public Opinion Research Center (VCIOM)
Sergey Gabestro —
Chairman of the Public Council under the Ministry of the Development of the Russian Far East; General Director, Fabrikant.ru LLC
Tatiana Maleva —
Director, Institute for Social Analysis and Forecasting, Russian Presidential Academy of National Economy and Public Administration
Alexander Puzanov —
General Director, Foundation Institute for Urban Economics
Venidikt Reutov —
An Old Believer, Emigrant from South America, Individual Entrepreneur
Valentin Timakov —
Director General, Agency for the Development of Human Capital in the Far Eastern Federal District

‘Intellectual Property: A Regional Development Tool’ International Forum

Meeting of the Eurasian Patent Organization Administrative Council

06.09.2017
15:15—16:45

Building D, level 5, Conference hall 15

We Are Neighbours: Earning through Cooperation

International space projects in the Asia-Pacific region

Today, the development of space-related activities and rapid progress in the field of applied space systems and research have created a solid foundation for intensifying international cooperation in this area. These trends are emerging most clearly in the Asia-Pacific region. What kinds of areas of space-related activity are of particular interest for cooperation in the Asia-Pacific region? How may regional international organizations assist in identifying and advancing large-scale, multilateral space projects?

Investment Projects in Extraction and Processing of Minerals

Mineral extraction remains the most important specialization of the Far East with immense reserves of gold, diamonds, ferrous and non-ferrous metals. Today, the value of the solid minerals reserves in the Far East amounts to USD 1.9 trillion. The work is already in hand on each of the directions, which will soon make it possible to significantly strengthen the position of the mining industry in the Far East and in Russia as a whole. A number of presentations focuses on unique, strategically important projects related to the production of high-quality coking coal, the development of deposits of non-ferrous and precious metals, as well as the construction of a mining and processing plant and a jewelry and lapidary cluster.

Moderator:
Andrey Zhurankov —
Head of the Analytical Group of the Press Center, News Agency TASS

The Fight Against Social Inequality and Polarization in Countries of the Asia-Pacific Region

The risks arising from growing social inequality have been discussed by international experts for a number of years. On the basis of UN data for 2017, it is clear that social inequality is far more pronounced than anyone had assumed: 3.6 billion people on the planet lack the basic essentials and many cannot afford to go to school or to visit the doctor. Reducing the scale of social inequality in the Asia-Pacific region will be of crucial importance in achieving the objective of reducing social inequality at the international level. What policies for reducing social inequality are being pursued by the countries of the Asia-Pacific region in order to protect disadvantaged groups? What programmes and ideas for reducing social polarization have already been implemented? Will these prove effective in the long-term? If not, what urgent steps must be taken?

Front row participants:
Olga Epifanova —
Deputy Chair, The State Duma of the Federal Assembly of the Russian Federation
Tatiana Maleva —
Director, Institute for Social Analysis and Forecasting, Russian Presidential Academy of National Economy and Public Administration
Evgeniy Podlesny —
Head, Department of Social Policy of the Chukotka Autonomous Region
Natalya Zubarevich —
Regional Program Director, Independent Institute for Social Policy (IISP); Senior Research Fellow, Russian Presidential Academy of National Economy and Public Administration

Unique conditions have been created in the Russian Far East for investing and doing business, but in the absence of a trusted specialized institution for reviewing non-arbitrable disputes, foreign investors are still behaving cautiously. Today, reforms to the judicial system are under active consideration on a federal level, the initial results of arbitral reform have been achieved, and new plans for the Enforcement Code of the Russian Federation are in preparation. But are these measures enough? What global structural changes are necessary in order to ensure investment security and the confidence of foreign investors? Could the Russian Far East act as an experimental staging area for the work of specialized judicial institutions? What recommendations can be offered by investors in the Russian Far East, major creditors and foreign partners?

Investment Projects in the Fishing Industry: Where and How Are We Investing in the Russian Far East?

Thirty percent of the aquatic bioresource reserves of the Asia-Pacific region are concentrated in the Russian Far East. In 2017, the Russian Government launched a fishing quota mechanism, under which fisheries are obliged to build either new fishing vessels in Russian shipyards or new seafood processing plants. A tryout for investment projects has also been announced. At the start of 2018, the winners of the competition will be awarded long-term licences to fish the Russian Far East for more than 500,000 tonnes annually of the most in-demand seafood resources on the Asia-Pacific market. To launch new investment projects for the existing players and for the entrance of new investors it is vital to facilitate the growth of companies' value in the industry. Which aquatic bioresources will be represented under the investment obligations, and how can interested parties become participants in the investment project competition? In which Russian shipyards can the construction of new fishing vessels be ordered? Do these have sufficient capacity to satisfy fishing industry demand, and would it be forward-looking to build new shipyards? Where in the Russian Far East will the construction of seafood processing plants bring the greatest benefit? The economics of investment projects for seafood processing in the Russian Far East – what role will be played by the ASEZ programme and the Free Port?

How Can We Ensure an Inflow of Private Investment into Developing the Infrastructure of Russia’s Far East?

Optimizing budget expenditure on major infrastructure projects in the Russian Far East is an important challenge facing both federal ministries and regional administrations. Public-private partnership (PPP) projects are already being implemented in eight out of the nine regions in the Far Eastern Federal District: 324 projects altogether, representing total private investment of RUB 57 billion. At the same time, the additional investment that needs to be attracted in order to develop and modernize public infrastructure in the Russian Far East is estimated in the hundreds of billions. According to a number of experts, available private capital for financing infrastructure projects is in the region of RUB 700 billion. However, investors often disregard PPP mechanisms due to a lack of well-structured projects. At the present time, only 15–20% of the total number of PPP projects initiated progress from the idea stage to implementation. This is linked first and foremost with a lack of preliminary planning, which requires considerable labour and financial resources. As a result, promising projects which have enormous significance for their local regions and are potentially interesting to investors never make it off the page. Which regions in the Far Eastern Federal District are ‘open’ to private investment in PPP projects? Who has created the right conditions for projects to be launched? In which regions are the most effective measures for stimulating investment being applied? What are the barriers to attracting private investment into regional infrastructure?

Panellists:
Yury Chayka —
First Deputy Chair of the Government of Khabarovsk Territory for Investment and Priority Projects
Andrey Donets —
Deputy Chairman of the Government of the Amur Oblast
Konstantin Limitovskiy —
Deputy Chairman of the Management Board, Eurasian Development Bank (EDB)
Igor Snegurov —
General Director, VIS Construction Group (VIS CG)
Maxim Sokolov —
Minister of Transport of the Russian Federation
Pyotr Zolotarev —
Deputy Chairman, Member of the Board, Bank for Development and Foreign Economic Affairs (Vnesheconombank)

The Russian Far East: Creating a New Quality of Life by Responding to Challenges

Integrated Development in the Russian Far East: Creating a Comfortable Living Environment

Concentrating resources in ‘growth points’, measures to reduce imbalances in quality of life, achieving more equal levels of socioeconomic development, and overcoming the limitations of infrastructure are the main challenges when it comes to formulating integrated development plans for the nine regions of the Russian Far East. What are the trends in regional development, as viewed through the prism of the recently formed ‘growth points’? What government support measures are already in place and in use, and what additional mechanisms are required? What needs to be done to create a safe and comfortable living space to fully realize, strengthen and grow human potential in the Russian Far East? How are plans for regional development interlinked, and will they create an overall architecture of development in the Russian Far East?

Moderator:
Pavel Minakir —
Scientific Director, Economic Research Institute of the Far Eastern Branch of the Russian Academy of Sciences

Panellists:
Tamara Atanova —
Deputy Chairperson of the Government of Magadan Region
Marina Dedyushko —
Senior Deputy Prime Minister of the Government of Amur Region
Victor Kalashnikov —
Deputy Chairman of the Government – Minister of Economic Development of Khabarovsk Territory
Alesia Kalinova —
Deputy Governor of Chukotka Autonomous Area, Head of the Department of Finance, Economy and Property Relations of the Chukotka Autonomous Region
Artur Niyazmetov —
Deputy Minister for the Development of the Russian Far East
Vera Shcherbina —
Chairperson of the Government of Sakhalin Region
Galina Sokolova —
Deputy Governor of the Jewish Autonomous Region
Aleksey Struchkov —
First Deputy Prime Minister and Minister of Economy, Sakha Republic (Yakutia)
Marina Subbota —
Deputy Chairman of the Government of Kamchatka Territory
Vasily Usoltsev —
First Vice-Governor of Primorsky Territory

The Russian Far East: Creating a New Quality of Life by Responding to Challenges

The Development of Human Capital as a Critical Factor in Successfully Modernizing Single-Industry Towns

The Russian Government first began implementing its priority programme to promote the integrated development of single-industry towns in July 2016. The programme encompasses 319 cities in 60 regions of the Russian Federation across eight federal districts. Under the direction of Russian Prime Minister Dmitry Medvedev, the programme is expected to reach the following target indicators by the end of 2018:• Create more than 200,000 jobs not connected with the major city employer;• Attract investment in fixed assets amounting to RUB 317 billion;• Significant improvements to the quality of the urban environment.Who should be engaged to bring change in single industry towns and how are they to work with existing social communities in these cities? What are the best practices in human capital development that can be replicated across single-industry towns? Who are the experts that can assist in developing the necessary institutions for these towns and what training programmes are needed to manage the transition?

Moderator:
Alexey Komissarov —
Vice-Rector, Director, Graduate School of Public Administration, Russian Presidential Academy of National Economy and Public Administration

Panellists:
Mikhail Khomich —
Acting Permanent Representative of the Head of the Republic of Udmurtia under the President of the Russian Federation
Stanislav Melyukov —
Head of the Municipality Belogorsk City of Amur Region
Aysen Nikolaev —
Head of the City District, Yakutsk City
Andrei Sharonov —
President, Moscow School of Management SKOLKOVO
Vladimir Solodov —
Presidential Plenipotentiary Envoy to the Far Eastern Federal District of the Russian Federation

Front row participants:
Svetlana Balova —
Minister of Economic Development of Amur Region
Dmitriy Gluzhko —
Deputy General Director for the Implementation of the Regional Staff Standard for Industrial Growth, Agency for the Development of Professional Communities and Skilled Workers
Alexey Muratov —
Partner, KB "Strelka"
Aleksey Nikitchenko —
Vice President, National Institute for System Study of Entrepreneurship Problems ANO; General Director, O2Consulting
Grigoriy Smolyak —
Director, Department of Human Сapital and Territorial Development, Ministry for the Development of the Russian Far East
Denis Tikhonov —
General Director, Corporation for Far East Development
Elena Ulyanova —
President, Rybakov Fund

Logistics in Russia and Asia-Pacific Interconnect under China’s Belt and Road Initiative

In partnership with FESCO

China is moving its Belt and Road initiative from a framework discussion phase to tangible projects, establishing the preconditions for the development of routes across Russia with the active involvement of major players in the Russian transport industry. Sino-Russian cooperation in this area is supported by the two countries’ heads of state, who signed a joint declaration on cooperation to connect the Eurasian Economic Union and the Silk Road Economic Belt. Freight owners in Asia-Pacific countries currently spend up to USD 1 billion per year on transporting freight by sea (bypassing Russia). If Russian and Chinese transport companies begin offering cheaper and more convenient services, up to 30% of freight could be transported by land across China and Russia rather than by sea. How should Russia make the most of the opportunities presented by China’s Belt and Road initiative? What action is already being taken by market players to develop the country’s transit potential, such as overland routes along the Trans-Siberian Railway? What limiting factors are currently preventing freight traffic in Asia-Pacific countries, like China, from being connected to Russian transit routes? What steps need to be taken by the Chinese and Russian governments in the near future to create conditions that will foster increased cooperation in this area?

Tourism. An Economy Based on Unique Experiences

Every year more than 170 million tourists from China, Japan, and South Korea travel abroad, where they spend more than USD 250 billion collectively. The Russian Far East possesses a unique selection of recreational resources capable of attracting a significant part of the tourist flow from the Asia-Pacific region. In order to support investment in tourism, advanced special economic zones have been created, an electronic visa was introduced in 2017 for citizens from 18 Asia-Pacific countries and the Middle East entering the Free Port of Vladivostok, entrance to Russian Far Eastern harbours has been significantly simplified for foreign cruise vessels, and special tax incentives have been introduced for tourism organizations operating in the macroregion. Investing in hotel and recreational infrastructure in the Russian Far East – where is there the greatest demand and where are the best economic prospects? How do investor support mechanisms in the tourism sector of the Russian Far East operate? What further steps can the government take to develop incoming and domestic tourism?

Russia’s Digital Far East: Finding Partners

Neighbouring leading Asia-Pacific countries, the Russian Far East has the opportunity to be first among Russian regions in attracting and adopting new technological solutions, developing digital skills, and laying a foundation for Russia’s future development. In order to succeed, public and private sector companies will need to join forces. Which are some of the sectors where a digital cluster in the Russian Far East could be competitive, what partners are needed to create it, and how can they be attracted? What experience acquired by its ‘eastern neighbours’ – China and Japan – would be of most benefit to the Russian Far East? What can the government do to make accessible and good-quality electronic services available to the population and to increase the effectiveness of the work of governmental bodies? What steps should be taken to complete the last mile to the consumer, develop e-learning platforms, and improve access to digital healthcare systems?

Connecting Europe and Asia. International Transport Corridors in the Russian Far East

An important project for realizing the transit potential of the Russian Far East is the development of the international transport corridors ‘Primorye 1’ and ‘Primorye 2’, linking the north-eastern provinces of China with ports in the south of Primorsky Territory. The potential total cargo base of these is estimated at around 45 million tonnes annually. It is the objective of both countries’ governments to make the transit of cargo through these corridors ‘seamless’ and competitive. Between 2016 and 2017, Russia for its part has adopted a full range of practical solutions for creating attractive conditions for cargo transit via international transport corridors: a 24-hour regime has been introduced for checkpoint operation together with simplified and fast-tracked customs control procedures designated for seaports rather than the land border. What action is the Chinese side taking to develop these corridors? When and under what conditions will the construction of new infrastructure for the international transport corridors begin? How will support for investors from both countries be realized as investment projects for the development of transport corridors are implemented? What measures must be taken to create a ‘seamless’ regime, reduce transport costs for shippers, and lower expenses and customs clearance times for transit cargo?

Education. What Will Be Done?

Quality of education is a major issue causing concern for residents of the Russian Far East. The number of government-funded places at Far Eastern universities is shrinking, whilst universities in China, Japan, and South Korea are attracting Russian school-leavers with a higher quality of education for similar fees. The local labour market is experiencing intensive growth in demand for labour resources and a shortage of engineers and workers. At the same time, the requisite level of professional training continues to increase, while competition for highly skilled staff is escalating. How can these challenges be addressed? What should the priorities for developing education infrastructure be, given the scale of the challenge involved in accelerating development in the Russian Far East? What solutions must be adopted at the federal level in order to ensure the advanced development of the region’s education system? What is the Russian Ministry of Education and Science doing to achieve these aims?

Panellists:
Maxim Basov —
Chief Executive Officer, Rusagro Group of
Companies
Sergei Kachaev —
Deputy Minister for the Development of the Russian Far East
Alla Kuznetsova —
Minister of Education and Science of Khabarovsk Territory
Vladimir Mau —
Rector, Russian Presidential Academy of National Economy and Public Administration (RANEPA)
Valentin Timakov —
Director General, Agency for the Development of Human Capital in the Far Eastern Federal District
Olga Vasilyeva —
Minister of Education and Science of the Russian Federation

Russia’s Pivot to the East: Outcomes and New Goals

TV Debates of Russia 24 and the Valdai Discussion Club

‘Russia’s Turn to the East’ has taken place. This is true both in an international respect – both political and economic – and, more importantly, internally, with measures for the development of Siberia and the Russian Far East, with the creation of the conditions for integrating them into the Asian and European markets. At the same time, Russia is diversifying its links with Asia – the number of highly important partners with which it is strengthening its relations already includes a large group of countries – China, Japan, South Korea, Singapore, and Vietnam. In a changing global environment, it is vital for Russia to build cooperation with its Asian partners. It is equally important that leading European, and perhaps also American players, should be ‘hitched’ to cooperative relationships between Russia, Asia, and Eurasia, both on a state and on a corporate level. A programme of action is needed which will strengthen Russia’s position in Asia and create a critical mass of collaboration and cooperation. This must be achieved first and foremost in economic terms, in order to make the country a fully-fledged Atlantic-Pacific power of the future. It is likewise important now to confirm Russia’s negotiating position – what do we want from our partners? It is vital that we address our partners in Asia with a clear and precise message, indicating what areas and topics in our relations with them are optimal for Russia from the point of view of the challenges posed by her internal development.

Panellists:
Timofei Bordachev —
Programme Director, The Valdai Discussion Club
Egor Borisov —
Head of the Republic of Sakha (Yakutia)
Andrei Bystritsky —
Chairman of the Board, Foundation for Development and Support of the Valdai Discussion Club
Sergey Karaganov —
Dean, School of International Economics and Foreign Affairs, National Research University Higher School of Economics; Honorary Chairman of the Presidium, Council on Foreign and Defence Policy
Jae-Young Lee —
Vice President, Russian and CIS Economy, Korea-CIS Economic Cooperation, Korea Institute for International Economic Policy (KIEP)
Edward Luttwak —
Senior Associate, Center for International and Strategic Studies (CSIS)